-
University of PennsylvaniaScholarlyCommons
Master of Science in Organizational DynamicsTheses
Organizational Dynamics Programs
6-1-2010
Environmental Sustainability and SustainableGrowth: A Global
OutlookNkechinyere V. AttahUniversity of Pennsylvania,
[email protected]
Submitted to the Program of Organizational Dynamics in the
Graduate Division of the School of Arts and Sciences in Partial
Fulfillment of theRequirements for the Degree of Master of Science
in Organizational Dynamics at the University of
PennsylvaniaAdvisor: Alan Barstow
This paper is posted at ScholarlyCommons.
http://repository.upenn.edu/od_theses_msod/34For more information,
please contact [email protected].
-
Environmental Sustainability and Sustainable Growth: A Global
Outlook
AbstractThis thesis examines the concept of environmental
sustainability with a focus on global efforts to achieve this.The
purpose of this capstone is to assess efforts made to curb the
impact of environmental degradation on thesociety by some developed
and developing countries such as Switzerland, United States of
America andChina. Excessive emphasis on environmental
sustainability using some policies could hurt the
economicactivities of a country through loss of jobs and societal
mishaps while on the other hand too much emphasison economic growth
could result into health risks, global warming and environmental
degradation within thesociety. This thesis further discusses the
need to strive towards a balance between environmental
sustainabilityand economic growth. Sustainable environment and
growth can only be achieved through the integration ofpolicies that
connect the environment, the economy and the society. Also, the
paper analyzes a number ofstrategic initiatives adopted by some
developed countries that other countries can adopt to achieve
thebalance between environmental sustainability and growth through
the integration of policies that connect theenvironment, society
and economy. And from the analyses, I conclude by outlining efforts
that should beexplored at the global level in order to achieve this
desired balance.
DisciplinesEnvironmental Health and Protection
CommentsSubmitted to the Program of Organizational Dynamics in
the Graduate Division of the School of Arts andSciences in Partial
Fulfillment of the Requirements for the Degree of Master of Science
in OrganizationalDynamics at the University of PennsylvaniaAdvisor:
Alan Barstow
This thesis or dissertation is available at ScholarlyCommons:
http://repository.upenn.edu/od_theses_msod/34
-
ENVIRONMENTAL SUSTAINABILITY AND SUSTAINABLE GROWTH:
A GLOBAL OUTLOOK
BY
Nkechinyere Vanessa Attah
Submitted to the Program of Organizational Dynamics
in the Graduate Division of the School of Arts and Sciences
in Partial Fulfillment of the Requirements for the Degree of
Master of Science in Organizational Dynamics at the
University of Pennsylvania
Philadelphia, Pennsylvania
2010
-
ENVIRONMENTAL SUSTAINABILITY AND SUSTAINABLE GROWTH:
A GLOBAL OUTLOOK
Approved by:
__________________________________________________
Alan Barstow, Ph.D., Advisor
__________________________________________________
Syd Havely, Ph.D., Reader
__________________________________________________
Frank Nuessle, MBA, Reader
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iii
ABSTRACT
This thesis examines the concept of environmental sustainability
with a focus
on global efforts to achieve this. The purpose of this capstone
is to assess efforts
made to curb the impact of environmental degradation on the
society by some
developed and developing countries such as Switzerland, United
States of
America and China.
Excessive emphasis on environmental sustainability using some
policies
could hurt the economic activities of a country through loss of
jobs and societal
mishaps while on the other hand too much emphasis on economic
growth could
result into health risks, global warming and environmental
degradation within the
society. This thesis further discusses the need to strive
towards a balance
between environmental sustainability and economic growth.
Sustainable
environment and growth can only be achieved through the
integration of policies
that connect the environment, the economy and the society.
Also, the paper analyzes a number of strategic initiatives
adopted by some
developed countries that other countries can adopt to achieve
the balance
between environmental sustainability and growth through the
integration of
policies that connect the environment, society and economy. And
from the
analyses, I conclude by outlining efforts that should be
explored at the global
level in order to achieve this desired balance.
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iv
ACKNOWLEDGEMENTS
I would like to extend my appreciation to Dr. Alan Barstow for
constantly
encouraging and challenging me as my capstone advisor. To my
wonderful
readers, Dr. Syd Havely and Frank Nuessle, I wish to thank you
for your interest
and stimulating feedbacks. Thank you to my husband and sons
(okibe, Attah,
Otse and Ot) for your patience and support. Finally, I would
like to thank my
parents, friends and classmates for their support, advice and
encouragement.
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v
LIST OF TABLES
TABLE Page
1 Annex I Countries based on UNFCC Classification 18
2 Annex II Countries based on UNFCC Classification 19
3 Developing Countries based on UNFCC Classification 20
4 Top Ranked Countries based on Human Development 23 Index,
2009
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vi
LIST OF FIGURES
FIGURE Page
1 Interactions between the main sectors of Sustainable
Development 5
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vii
TABLE OF CONTENTS
Page
ABSTRACT iii
ACKNOWLEDGEMENTS iv
LIST OF TABLES v
LIST OF FIGURES vi
CHAPTER
1 Introduction 1
2 Literature Review of Environmental Sustainability and
Sustainable
Growth 4
Definition of Sustainability
Definition of Environmental Sustainability
Definition of Sustainable Growth
Historical Review of Sustainability
3 A Look at Environmental Sustainability efforts by some
developed
developing countries 17
Switzerland
United States of America
China
Revealing Questions
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viii
4 Integration of Environmental & Economic policies towards a
balanced
Society 50
Imposing Environmental Taxes
Tradable Permits
Encouraging Technological Development
Direct Environmental Regulation
Environmental Policies and Cushioning the Effects on the
Society
5 Conclusions 58
REFERENCES 61
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1
CHAPTER 1
INTRODUCTION
Environmental sustainability has become increasingly important
as we
witness more extreme weather changes, global warming and
environmental
degradation. As the world population grew, the need for more
resources also
increased. In order to meet the increasing demand for these
resources, more
industrial activities also grew around the world.
These increased industrial activities over the years did not
consider the
resulting environmental degradation such as water, air and land
pollution. The
degradation was not considered along with the intended
industrial growth, thus,
the value proposition of much economic activity ignored these
costs. Typically,
the enterprises that produced these negative effects on the
environment were not
held accountable for them. They externalized these costs and the
society
suffered. Many ecosystems have been adversely affected to the
point where they
can no longer withstand or recover from natural disasters
resulting from human
activities and such disasters include global warming, flooding
and extreme
weather conditions.
These negative consequences on our environment have drawn a lot
of
attention on a global scale. Several nations have gathered over
the years to
deliberate on immediate solutions around the world. One of such
conventions is
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2
the recent December 2009 summit that was held in Copenhagen,
Denmark. The
United Nations Framework Convention on Climate Change (UNFCCC)
is the
international environmental treaty produced at the United
Nations Conference on
Environment and Development (UNCED), informally known as the
Earth
Summit, held in Rio de Janeiro from 3rd to 14th June 1992. The
objective of the
treaty is to stabilize greenhouse gas concentrations in the
atmosphere at a level
that would prevent dangerous anthropogenic interference with the
climate.
Subsequently, other conventions followed such as the Kyoto,
Japan in 1997 and
then the Copenhagen, Denmark in 2009. The issue of climate
change was
extensively discussed which has become a growing concern around
the world
due to carbon emissions from fossil fuels.
Several countries such as Finland, Sweden and Norway to mention
a few,
have adopted some environmental policies to help reduce
environmental
degradation. Some of these policies have been challenged as
detrimental to
economic growth while others argued for more stringent
environmental protection
policies. Considering every countrys need to strive towards
economic growth
while sustaining the environment, there is the growing concern
to adopt policies
that give the right balance on both.
The purpose of my thesis is to analyze the various environmental
policies
adopted by a number of developed and developing countries and
the implication
of these policies on the society. Also, I would explore the
importance of balancing
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3
the scale between environmental and economic sustainability by
bringing out
successful policies adopted by some practicing countries.
The format of this thesis is outlined in five chapters, each
covering distinct
areas as I work towards the conclusion of my analysis. Chapter 1
serves as the
introduction to my paper. It gives an insight on what the thesis
hopes to achieve
and what each chapter will be discussing.
Chapter 2 explores the literature review of environmental
sustainability
and sustainable growth. It brings out interesting contributions
and criticisms in the
cause of solving the environmental degradation problems.
Chapter 3 discusses efforts made by some developed and
developing
countries towards environmental sustainability and provides
details of some
policies adopted by some countries with the resultant effects on
the society.
Chapter 4 analyzes the strategies countries are adopting or
should adopt
for the future. This also takes into account global strategies
that countries should
consider as a collective effort to fight environmental
degradation.
Chapter 5 reflects my concluding thoughts on environmental
degradation
and using integrated policies to achieve the balance in the
society.
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CHAPTER 2
LITERATURE REVIEW OF ENVIRONMENTAL SUSTAINABILITY AND
SUSTAINABLE GROWTH
Several works and writings have been done on environmental
sustainability and sustainable growth over the years. This
chapter takes a look at
the term Sustainability and how the drive for sustainability has
been fuelled by
countries, private organizations and United Nations over the
years.
Definition of Sustainability
There are several definitions of the term sustainability. While
some have
defined sustainability in relation to the ability of man to
preserve the available
natural resources and not overuse the resources in a way that it
will be deficient
in the future; others have defined it in relation to policy
making. But the definition
given by the UN Commission on Economic Development in its 1987
Brundtland
report seems to be generally acceptable. In its report titled
Our Common Future,
sustainability is defined as that which meets the needs of the
present without
compromising the ability of the future generations to meet their
own goals
(United Nations, 1987). Although, some writers have found this
definition to be
problematic (Taylor 2002; Jabareen 2008; Ll 1991), yet, most
believe that it
meets most aspects of sustainability in its wide applications
(Dale, 2001, Adams,
2001).
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5
Taylor (2002), in his critic of the UN definition; argued that
it is often
difficult to determine the future needs of people in the next
generation which may
be different from the needs of people today. He further added
that the way the
developed countries view the concept of needs, is completely
different from the
views of that of the developing countries. However, even though
the UN
definition of sustainability may have raised some controversies,
it still covers the
two fundamental issues; the pressing problem of environmental
degradation that
results from economic growth, and the need for such growth to
lighten poverty in
the society. Barton (2000) and Du Plessis (2000) present this as
three
interconnected sectors in a conceptual model to describe the
term sustainable
development. These interconnected sectors represent the Society,
the Economy
and the Environment (see Figure 1). Barton (2000) and Du Plessis
(2000)
maintain that, there must be a reasonable level of balance of
interactions
amongst these sectors for the world to achieve sustainable
development.
Figure 1. Interactions between the main sectors of Sustainable
Development
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6
But despite all these critiques, there is a general consensus
that the rate
of environmental degradation is increasing very fast. The rate
of transformation
of the earth is very rapid especially in the developing
countries that are currently
undergoing industrialization. The significance and scale of the
global human
footprint is not in doubt. Consumption of living resources as
raw material and
sinks for waste materials is high and growing (Wackernagel &
Rees, 1996). The
realization of sustainable development and the need to maintain
a balance
between the environment, economy and man has become the pressing
goal that
is facing the communities, enterprise organizations, government
and the world at
large. Developing and developed nations are interacting in a bid
to work towards
a sustainable environment.
Definition of Environmental Sustainability
According to BusinessDictionary.com, Environmental
sustainability is
defined as maintaining the factors and practices that contribute
to the quality of
environment on a long-term basis.
Another definition of environmental sustainability has been
given by Daly
(1973, 1974, 1992, &1999) and Daly & Cobb (1989):
1. Output rule: Waste emissions from a project or action being
considered
should be kept within the assimilative capacity of the local
environment, without
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7
unacceptable degradation of its future waste absorptive capacity
or other
important services.
2. Input rule:
Renewable resources: (e.g., Forest, fish) harvest rates of
renewable resources inputs must be kept within regenerative
capacities of the natural system that generates them
Non-renewables: depletion rates of non-renewable resource inputs
should be set below the historical rate at which renewable
substitutes were developed by human invention and investment
according to the Serafian quasi-sustainability rule. An
easily
calculable portion of the proceeds from liquidating
non-renewables
should be allocated to the attainment of sustainable
substitutes
Definition of Sustainable Growth
Financial Times Lexicon defined sustainable growth as growth
that is
possible to continue without causing economic problems and
economic growth
that is possible to sustain without causing environmental
problems.
Historical Review of Sustainability
The term sustainable was first introduced into political
language by the club
of Rome, an international association of scientists, business
executives, public
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8
officials and scholars. This was in a report called The limits
to growth published
in 1972. The report disputes the idea of growth that contrasts
the present with the
past, and looks at the future as a continuous possibility for
further growth and
improvement since the idea failed to recognize that resources
are finite, thus
growth based on resources cannot be infinite.
The writers of the report Limits of growth described
sustainable: We are
searching for a model output that represents a world system that
is: 1.
Sustainable without sudden and uncontrollable collapse; and 2.
Capable of
satisfying the basic material requirements of its entire people
(Meadows et al,
1972, p.158).
In 1980, the International Union for Conservation of Nature
(IUCN), in
collaboration with the United Nations Environment Programme, the
World Wildlife
Fund (WWF), the Food and Agriculture Organization, and the
United Nations
Educational, Scientific and Cultural Organization (UNESCO),
published a report
titled The World Conservation Strategy. This report was directed
at policy-
makers, conservationists and development practitioners.
In The World Conservation Strategy report, conservation was
defined as the
management of human use of the biosphere so that it may yield
the greatest
sustainable benefit to present generations while maintaining its
potential to meet
the needs and aspirations of future generations. It further
described
development as the modification of the biosphere and the
application of human,
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9
financial, living and non-living resources to satisfy human
needs and improve the
quality of human lifeFor development to be sustainable, it must
take account of
social and ecological factors as well as the short-term
advantages of alternative
actions (IUCN, 1980).
In 1987, the Brundtland Commission, which gave rise to the Rio
summit, had
defined sustainability as a development that meets the needs of
the present
without compromising the ability of future generations to meet
their own needs
(UN, 1987).
But sustainable development eventually penetrated the global
stage during
the 1992 Earth Summit in Rio de Janeiro. The essence of the
summit was to
work towards a new balance between the use and the preservation
of natures
potentials and resources. The message reflected the complexity
of the problems
facing the world which emphasized poverty as well as excessive
consumption by
affluent population as causing a lot of damage to the
environment (www.UN.org).
This message gave rise to global recognition for the need by
governments to
redirect international and national policies to ensure that all
economic decisions
fully take into account any environmental impact.
Prior to the 1987 Brundtland report and the 1992 Earth Summit
report in Rio
de Janeiro, there have been heated debates between activists
advocating for
more economic growth and those for sustainable environment. The
activists have
argued that if sustainability meant drastically reducing the
consumption of natural
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10
resources and industrial activities then this will subsequently
slow down
economic growth. Majority of the controlled growth interests are
from the
developed countries who argued that the earth was being depleted
of its natural
resources at an alarming rate and left in return with pollution
and environmental
degradation which if not properly checked will result into
catastrophe in the
future. The 1987 Brundtland report and the 1992 Earth Summit
report was a
measure by the UN to generate a political compromise between
these two
groups.
Both reports did not support any of the two arguments but rather
advocated
for a balance to be achieved hence its choice term Sustainable
Development
which it defined as that which meets the needs of the present
without
compromising the ability of the future generations to meet their
own goals. In this
way, the UN report was able to advocate for balance in which
technology and
social organization can both be managed and improved to make the
way for a
new era of economic growth hence the coin-word sustainable
growth. This gave
some level of satisfaction to both groups and a consensus
understanding on
global efforts towards achieving healthy environment evolved.
Five major
agreements were put into place at that time: Rio Declaration,
Forest Principles,
Convention on Climate Change, Convention on Biological
Diversity, and Agenda
21. The Agenda 21 which was the most important achievement of
the Earth
Summit provided clear guidelines on how policymakers can achieve
sustainable
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11
development in the next century. But this mutual understanding
did not hold for
long.
The advocates for continuous growth emphasized the obvious need
for rapid
growth especially in the developing countries in order to reduce
poverty. And
they went on to stress the importance of the developed countries
freeing up the
environmental space by reducing the use of natural resources and
limiting
pollution overload so that the growth in the developing
countries could be
balanced by the negative throughput growth in the developed
countries. Even
though most of the developed countries are campaigning for the
need for
sustainable development, a number of them are not willing to
yield to the
proposals made by the developing countries. This generated
another level of
debate frustrating the global efforts.
In 2002, another World Summit on Sustainable Development was
held in
Johannesburg, South Africa. This Summit was a follow-up on the
low
achievements by countries towards the agreements held at the
Earth Summit in
Rio. Some of the main areas agreed upon at the Johannesburg
Summit were to
increase access to safe drinking water to more people, to
increase access to
energy services, energy efficiency and the use of renewable
energy, to reduce
biodiversity loss and to promote the implementation of national
sustainable
development strategies amongst others.
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12
Another effort to create a global collaboration towards
sustainable
development was made during the Kyoto Protocol in 1997. The
Kyoto Protocol is
an international agreement linked with the United Nations
Framework Convention
on Climate Change (UNFCCC) (http://unfccc.int). The main aim of
the Kyoto
protocol was to set a binding target for the industrialized
countries and the
European community to reduce greenhouse gas (GHG) emissions.
Having
recognized that the developed countries are mainly responsible
for the current
high levels of greenhouse emissions in the atmosphere due to
their past
industrial activities, the protocol placed a heavier burden on
these developed
nations under the principle of common but differentiated
responsibilities.
(http://unfccc.int)
The Kyoto Protocol became effective on 16 February 2005 even
though it
was adopted in Kyoto, Japan on 11 December 1997. All member
countries were
classified into three; Annex I countries which include the
industrialized countries,
Annex II countries which include the developed countries and
lastly the
developing countries. It requires 55 industrialized countries to
reduce their
greenhouse gas to an average of 5.2% against 1990 levels over
the five-year
period 2008-2012. The developed countries are to pay for the
technological costs
of the developing countries while the developing countries have
no obligatory
requirement under the Protocol. The developing countries may
receive funds and
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13
technology from or sell carbon emission credits to the developed
for related
projects.
The Kyoto Protocol was largely flawed (Shaw, 2002) and had some
loopholes
from the beginning reflecting the politics of reaching some
agreement rather than
equity of sharing the burden of the gas emission. Some countries
are yet to meet
the Kyoto Protocol emission targets of which USA is an example.
The USA emits
about a quarter of the worlds greenhouse gases while China and
India remain
reluctant on further reductions even though they are huge
emitters. As at 3rd
December 2009, only 189 countries and 1 regional economic
integration
organization (the EEC) have deposited instruments of
ratification, accession,
approval or acceptance (http:unfccc.int). Emissions of
greenhouse gases have
continued to rise resulting into major floods, wildfires,
cyclones and extreme
climate conditions. Even though there is still a general
consensus on the need to
curb the emission of greenhouse gases, there is yet a general
agreement on how
to distribute the burden amongst nations.
The most recent follow-up on the Kyoto Protocol is the
Copenhagen
conference held in Denmark in December 2009. The objective was
to ensure a
stronger commitment from the countries on the reduction of the
greenhouse
emissions since the Kyoto agreement was going to expire by 2012.
But
according to Taylor (2010), the meeting failed to bind the
promises made by the
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14
countries into an international agreement. This was supposed to
be the bedrock
for the vision of an international carbon trading market.
Critics had argued that the Kyoto summit was a threshold for
disaster
because it did not consider some developing countries such as
China and India
who are currently emitting most of the greenhouse gases. The
Copenhagen
conference was supposed to be a step towards tightening the
loopholes in which
China and some other countries such as Brazil, South Africa and
India had
refused to commit to further reduction of emissions. This only
ended up with an
agreement to limit global warming to two degrees Celsius (3.6
Fahrenheit), but
without spelling out the important stepping stone on how global
emission targets
for 2020 or 2050 will be fully achieved (France24, 2009).
However, even with the controversies surrounding the agreement
to curb
emissions by countries, a lot of private organizations and NGOs
are already
taking strategic steps towards the drive for sustainable
development. More
attention have been given to the social and environmental
dimensions of
business activities in organizations which are constantly linked
to firms economic
impact in the notion of sustainability or triple bottom line
(triple P) (Elkington,
1997). Managers are directing their attention simultaneously on
the triple bottom
line; People (social), Planet (environmental) and Profit
(economic). Organizations
are increasing their accountability to stakeholders on
environmental and social
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15
issues. They are publishing their efforts and future strategies
towards sustainable
development in their reports (Baskin, 2006, ACCA, 2004).
Recently, a group of 29 companies from all over the globe drew
up a project
called Vision 2050. The participating companies include
Volkswagen, Accenture,
Alcoa, The Boeing Company, The Procter & Gamble Company and
Toyota Motor
Corporation just to mention a few. The goal of the project is to
provide a
framework of a vision of the world well on the way to
sustainability by 2050 which
will entail fundamental changes in business and human behavior,
changes in
governance structures and economic frameworks.
Some of the critical pathways the companies would change in
order to
achieve the 2050 vision include; halving carbon emissions
worldwide (based on
2005 levels) by 2050, with greenhouse gas emissions peaking
around 2020
through a shift to low-carbon energy systems and highly improved
demand-side
energy efficiency; halting deforestation and increasing yields
from planted
forests; delivering four-to-tenfold improvement in the use of
resources and
materials; and doubling of agricultural output without
increasing the amount of
land or water used.
But in order to achieve these desired outcomes, more companies
would have
to join in the pursuit of the Vision 2050. Business will lead
market change by
creating efficiencies, competitive advantage and meeting
customer needs. This
shift towards sustainability will create zero-waste cities,
better ecosystems and
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livelihoods and proffer opportunities for finance, information
technology and
partnership around the globe (WBCSD, 2010)
All these efforts made by countries, private organizations,
non-governmental
organizations and United Nations have contributed significantly
towards the
publics awareness of the worlds environmental issues and this
has generated a
consciousness at all levels to minimize the impact of economic
activities on the
environment. Some levels of success have been achieved towards
sustainable
development through these awareness and strategies, yet there is
still the need
to intensify efforts. And these efforts can only be successful
on a large scale if
environmental sustainability is not viewed singly but with the
integration of social
and economic impact on the society.
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CHAPTER 3
A LOOK AT ENVIRONMENTAL SUSTAINABILITY EFFORTS BY SOME
DEVELOPED AND DEVELOPING COUNTRIES
The United Nations Framework Convention on Climate Change
(UNFCC),
a body of the United Nations, classified countries into
developed (Annex I and
Annex II) and developing countries based on the reduction of
carbon emission
purpose. This is because the environmental restrictions on
greenhouse gas have
to be treated differently for developed countries than for
developing countries.
The developed countries such as Finland, Sweden and Switzerland
have
had more than fifty years of industrialized activities and
cutting down the rain
forests which have caused the high accumulation of the
greenhouse gases
currently being faced. However, the developing countries such as
Brazil, India
and China are just emerging in the industrialized world and are
viewed as not
having contributed much to the accumulated greenhouse gases and
most of the
greenhouse gases generated in the developing countries result
from the
production of consumer goods. The UNFCC therefore placed a
restriction on the
emission of greenhouse gases of the developed countries while
the developing
countries were not placed under any mandatory obligation but
were encouraged
to access better technology in order to curb their greenhouse
gases.
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18
The environmental sustainability efforts of some of these
developed and
developing countries towards achieving the set target by UNFCC
will be
assessed and the focus will be on the environment, the society
and the economy.
Annex I parties, from UNFCC classification, include
industrialized
countries that were members of the OECD (Organization for
Economic Co-
operation and Development) in 1992, and countries with economies
in transition
(the EIT parties), including the Russian Federation, the Baltic
States, and several
Central and Eastern European States (www.unfccc.com). The Kyoto
Protocol set
binding targets for these industrialized countries and the
European community for
reducing greenhouse gas (GHG) emissions. These reductions amount
to an
average of 5.2% against 1990 levels over the five-year period of
2008-2012. The
list of countries classified under Annex I group (see Table 1)
includes
Switzerland, a prominent industrialized country, which will be
discussed further in
my paper in order analyze its environmental sustainability
efforts.
Table 1. Annex I Countries based on UNFCC Classification
Australia Finland Lithuania Slovenia Austria France Luxembourg
Spain Belarus Germany Monaco Sweden Belgium Greece Netherlands
Switzerland
Bulgaria Hungary New Zealand Turkey Canada Iceland Norway
Ukraine Croatia Ireland Poland United Kingdom
Czech Republic Italy Portugal United States of America
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19
Denmark Japan Romania
European Economic Community
Latvia Russian Federation
Estonia Liechtenstein Slovakia
Annex II parties consist of the OECD (Organization for Economic
Co-
operation and Development) members of Annex I, but none of the
EIT
(Economies in transition) parties is included. Members of Annex
II group are
required to provide financial resources to enable developing
countries undertake
emissions reduction activities under the Convention and to help
them adapt to
the adverse effects of climate change. In addition, they have to
take all
practicable steps to promote the development and transfer of
environmentally
friendly technologies to EIT parties and developing countries.
Funding by Annex
II Parties will be channelled mostly through the Conventions
financial
mechanism (unfccc.int). The list of countries classified under
Annex II by UNFCC
(see Figure 2) includes United States of America which will be
discussed further
to highlight their environmental sustainability efforts.
Table 2. Annex II Countries based on UNFCC Classification
Australia Germany New Zealand Austria Greece Norway Belgium
Iceland Portugal Canada Ireland Spain Denmark Italy Sweden
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20
European Economic Community
Japan Switzerland
Finland Luxembourg United Kingdom
France Netherlands United States of America
Developing countries have no international obligations in the
first
commitment under the Kyoto Protocol. The members under this
party may
receive funds, technology and sell emission credits from members
of Annex II
Parties for climate-related studies and projects. The list of
such countries (see
Table 3) classified under this category by UNFCC includes China
which will be
the main point of discussion within this group.
Table 3. Developing Countries based on UNFCC Classification
Afghanistan Bangladesh Burkina Faso Comoros Dominica
Albania Barbados Burundi Congo Dominican Republic
Algeria Belize Cambodia Cook Islands Ecuador Angola Benin
Cameroon Costa Rica Egypt Antigua & Barbuda Bhutan Cape Verde
Cuba El Salvador
Argentina Bolivia Central Africa Republic
Cyprus Equatorial Guinea
Armenia Bosnia & Herzegovina
Chad Cote dIvoire Entrea
Azerbaijan Botswana Chile Democratic Peoples Republic of
Korea
Ethiopia
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21
Bahamas Brazil China Democratic Republic of the Congo
Fiji
Bahrain Brunei Darussalam
Colombia Djibouti The former Yugoslav Republic of Macedonia
Gabon Kyrgyzstan Myanmar Saint Lucia Togo
Gambia Lao Namibia Saint Vincent and the Grenadines
Tonga
Georgia Lebanon Nauru Samoa Trinidad and Tobago
Ghana Lesotho Nepal San Marino Tunisia
Grenada Liberia Nicaragua Sao Tome and Principe
Turkmenistan
Guatemala Libyan Niger Saudi Arabia Tuvalu
Guinea Madagascar Nigeria Senegal Uganda
Guinea-Bissau Malawi Niue Serbia United Arab Emirates
Guyana Malaysia Oman Seychelles United Republic of Tanzania
Haiti Maldives Pakistan Sierra Leone Uruguay
Honduras Mali Palau Singapore Uzbekistan
India Malta Panama Solomon Islands
Vanuatu
Indonesia Marshall Islands
Papua New Guinea
South Africa Venezuela
Iran Mauritania Paraguay Sri Lanka Viet Nam
Israel Mauritius Peru Sudan Yemen
Jamaica Mexico Philippines Suriname Zambia
Jordan Micronesia Qatar Swaziland Zimbabwe
Kazakhstan Mongolia Republic of Korea
Syrian
Kenya Montenegro Republic of Moldova
Tajikistan
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22
Kiribati Morocco Rwanda Thailand
Kuwait Mozambique Saint Kitts and Nevis
Timor-Leste
Switzerland
Switzerland is of great interest in the category of
industrialized countries
because Switzerland has achieved significant success towards
sustainable
development.
Brief Introduction
Switzerland is a country in Western Europe with a population of
7.78
million people. Switzerland is well known for its neutrality and
independence. The
country officially became a UN member in 2002 and has remained
active in UN
and other international organizations but with a strong
commitment to neutrality.
Switzerland is yet to be a member of the European Union as there
are doubts
whether its neutrality would be compatible with EU
membership.
Society
Switzerland is a federal republic with three different political
levels; the
Confederation, the Cantons and the Communes. Sustainable
Development is
seen as a joint responsibility, whereby The Confederation and
the Cantons shall
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23
strive to establish a durable equilibrium between nature, in
particular its capacity
to renew itself, and its use to man (Swiss Federal Government
1999, Article 73).
The official languages in Switzerland are Italian, French,
German and
Romansch. The life expectancy at birth is 80 years (CIA 2009).
The countrys
human development index is ranked 9th out of 185 countries in
2009 (Human
Development Report, 2009). Human Development Index is a
statistical report
generated under the United Nations Development Programme. This
report
classifies the development of countries based on life
expectancy, knowledge and
education, and standard of living. The list of the top ten
countries with the highest
HDI includes Switzerland (See Table 4).
Table 4. Top Ranked Countries based on Human Development
Index,
2009
1. Norway 6. Netherland
2. Australia 7. Sweden
3. Iceland 8. France
4. Canada 9. Switzerland
5. Ireland 10. Japan
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24
Economy
Switzerland has maintained a stable modern market economy with
low
unemployment, a highly skilled labor force and a per capita GDP
among the
highest in the world. The GDP is estimated at US$316.1 billion
(purchasing
power parity) with a real growth rate of -1.8% (2009 est.) (CIA
2009). The GDP
per capita in 2009 was US$41,600 (CIA, 2009). The predominant
industries in
Switzerland are mainly banking, machinery, chemicals, textiles,
tourism,
precision instruments and insurance. The industrial growth rate
was 6.5% (2006
est.). The labor force by occupation were 3.9% agriculture,
22.8% industry and
73.2% services (2005 est.) while unemployment rate was 3.7 in
2009 (CIA 2009)
Environment
Switzerland has a terrain that is mostly mountainous with a
central plateau
of rolling plains, hills and large lakes. The countrys climate
varies widely with
altitude and is temperate. Switzerlands natural resources
comprise mainly of
salt, timber and hydropower. The country has an environmental
index of 89.1
(ranked 2nd out of 163) (Yale & Columbia 2010) from its
initial 81.4 in 2006
(ranked 16th out of 133). As at 2006, Switzerlands greenhouse
gas (million tons
CO2 eq.) emissions were 53 while its greenhouse gas per capita
(tons CO2)
emissions were 7.0. As at 2006, the energy consumption (1000tons
oil
equivalent) in Switzerland was 19,785 (unstat.un.org).
Switzerland signed the
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25
Kyoto Protocol on 16th March, 1998, ratified the Kyoto Protocol
on 9th July, 2003
and it went into force on 16th February, 2005.
(http://unfccc.int)
The countrys environment is subject to severe pressures
(pollution,
extraction of natural resources, spatial restructuring), due in
particular to industry,
agriculture, transport and tourism. These pressures are as the
result of its high
population densities and high level of economic activity, and
from Switzerlands
location at the heart of Europe (OECD, 2007)
Switzerland thrives towards incorporating environmental
sustainability in
its economic policies. Sustainable development was declared to
be a national
objective in Article 2 of the New Swiss Federal Constitution in
1999. The Federal
office for Spatial Development (ARE), the group that coordinates
sustainable
development policy in Switzerland, has developed a conceptual
framework for
conducting sustainability assessments at the federal level. The
conceptual
framework can be modified to meet the needs specific to
different policy areas.
This open and adaptable approach focuses on the drafting phase
of activities
and projects at the level of policy strategy, because this is
where the greatest
scope for action in optimizing sustainability is found.
(Wachter, 2005)
Wachter (2005) argues that sustainable development demands
that
political action should not be directed from one dimension alone
but rather should
involve the interplay between the three dimensions of the
environment, the
economy and society. And that the goal of sustainable
development is to achieve
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26
equal development of these three target dimensions and in the
process of
achieving sustainable development, there is bound to be
trade-offs. This is how
Switzerland views the concept of sustainable development.
According to OECD (2007), for over 30 years, the ambitious
environmental policies promoted by the Confederation have been
implemented
by the cantons and the communes. These environmental policies
have been
based on prescriptive approach, sustained by government funding
and active
public opinion that is deeply concerned about the environment.
These policies
have yielded remarkable results in combating pollution and
natural hazards.
Some of these environmental policies have focused on partnership
with
economic interests and civil society as a whole, on application
of the polluter
pays principle and on prevention. The Polluter Pays Principle
(PPP) is an
environmental policy principle which entails that the costs of
pollution in the
environment be borne by those who cause it. It is usually
implemented through
two different policy approaches; that is the command-and-control
approaches
which include performance and technology standards; and the
market-based
instruments which include pollution taxes, tradable pollution
permits and product
labeling.
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27
Environmental Management
Strengthening the implementation of environmental policies
Switzerlands performance in fighting pollution is among the best
in the
world and this reflects in its EPI of 89.1(Yale & Columbia,
2010). This is because
of their legislative and institutional policy regarding the
environment. There are
good interactions amongst all stakeholders which include the
businesses, NGOs,
as well as amongst the Confederation, Cantons and Communes. The
federal
authorities formulate wide-ranging planning documents that
incorporate
environmental issues. Also, economic instruments are being used
with growing
effectiveness within the framework of greater internalization of
external costs. A
number of environmental taxes and budget-neutral fiscal measures
have been
explored and/or adopted (OECD, 2007). All these efforts are
reflected in
government and business spendings which have remained stable
over the years
and which have yielded economic benefits such as reduction in
health care
expenses.
Water
The quality of drinking water in Switzerland is among the best
in the world
and nearly 97% of its residents are connected to wastewater
treatment. The
loads of industrial pollutants have been estimated and their
environmental costs
internalized in the water prices charged to businesses connected
to public
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28
sewerage systems. Even though there may be pollution from
agriculture and
other sources, there are efforts to bring them down to the
barest minimum. This
way Switzerland is achieving its set objective of ensuring safe
and clean water
for all in the country.
Air
According to OECD (2007), the air quality in Switzerland has
continued to
improve as there have been further reductions in concentrations
of the main air
pollutants. It is amongst the countries with the lowest emission
of SOX and NOX
per unit of GDP. This is due to the strict management and
significant financial
support, and the highly developed public transport system. There
has been a
significant decrease in heavy vehicle traffic over the years and
an increase in
combined transport. There is continuous modernization of railway
infrastructure
and also the introduction of a distance-related heavy vehicle
fee. SwissEnergy
programme has significantly helped to reduce energy consumption
and CO2 with
an increase in the share of renewable energy sources in the
total energy supply.
Nature, biodiversity and landscapes
Planning documents regarding the landscape, nature and forests
have
been adopted and the corresponding plans implemented (OECD,
2007).
Switzerland has achieved some tremendous progress towards
sustainable forest
management and wetland conservation. Development of natural park
systems is
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29
already in progress and there are lots of farmland which
consists of semi-natural
habitats that help preserves the biotope for the fauna and
flora. Even though
there is more to be done, the country has laid down financial
support and policies
to guide in ensuring this.
Integration of environmental and economic decisions
Switzerland has made significant progress in decoupling
environmental
pressures and economic growth amidst fears of weak economic
growth and
international competitiveness. This is in regards to air
pollutants; the use of
fertilizer and pesticides, and water extraction. The sustainable
development
strategies adopted in 1997 and 2007 have stimulated better
collaboration among
government agencies which have been followed by evaluation and
monitoring
procedures. The federal authorities prepare sectoral strategy or
planning
documents that cover environmental issues. Switzerland has made
some
progress in internalizing external costs in water treatment and
waste
management, and in integrating environmental concerns into
policies for sectors
such as agriculture and transport. The economic instruments
implemented such
as VOC tax and the heavy vehicle fee, have proven effective.
Integration of environmental and social decisions
Both environmental and social decisions are considered together
in
Switzerland. Environmental democracy is based primarily on the
practice of
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30
holding referenda, on the accessibility of environmental
information to all
interested parties and to the general public, and on appeals to
the Federal
Supreme Court by environmental NGOs. Environmental education is
also
dispensed at all levels, from elementary school to adult
education, and it is
characterized by innovative approaches and great thematic
richness (OECD,
2007).
United States of America
United States of America is picked for discussion from the Annex
II parties
because United States of America has given huge financial help
to a number of
developing countries towards projects involving sustainable
development but as
a country with a lot of international reliance as an economic
role model, it still
needs to do more in terms of sustainable development and
international
cooperation by taking a forefront in ratifying the Kyoto
agreement.
Brief Introduction
United States is the worlds third-largest country by size. It
has a
population of 307 million, the third largest in the world (CIA,
2009). The country
officially became a UN member on 24th October, 1945 and is one
of the five
permanent members of the UN Security Council. United States has
remained
very active in many UN and other international organizations
with veto powers.
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31
Society
United States of America is a federal constitutional republic
with fifty states
and a federal district. There are three levels of government;
the federal, the state,
and the local government. The county and municipal governments
usually split
the duties of the local government. The federal government is
composed of the
executive, the legislative and the judicial. More than 90% of
the people in
America speak English. The countrys human development index is
ranked 13th
out of 185 countries in 2009 (Human Development Report, 2009).
The life
expectancy at birth is 78years (CIA 2009).
Economy
United States of America has the largest and most
technologically
powerful economy in the world. In this market-oriented economy,
private
individuals and business firms make most of the decisions, and
the federal and
state governments buy the needed goods and services
predominantly in the
private marketplace. US business firms enjoy greater flexibility
than their
counterparts in Western Europe and Japan in decisions to expand
capital plant,
to lay off surplus workers, and to develop new products (CIA,
2009). The GDP is
estimated at US$14.26 trillion (purchasing power parity), which
is the 2nd largest
in the world, with a real growth rate of -2.4% (2009 est.) (CIA,
2009).The GDP
per capita in 2009 was US$46,400 (CIA, 2009). The predominant
industries in
America are mainly petroleum, motor vehicles, steel,
aerospace,
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32
telecommunications, chemicals, electronics, food processing,
lumber, mining and
consumer goods. The industrial growth rate was -5.5% (2009
est.). The labor
force by occupation were 0.6% agriculture, 22.6% industry, 35.5%
managerial,
professional, and technical services, sales and office 24.8%,
and lastly 16.5%
other services (2007 est.) while unemployment rate was 9.4% in
2009 (CIA
2009).
Environment
United States has a terrain that is of vast central plain,
mountains in west,
hills and low mountains in east, rugged mountains and broad
river valleys in
Alaska; and rugged with volcanic topography in Hawaii. The
climate is mostly
temperate, but tropical in Hawaii and Florida, arctic in Alaska,
semi-arid in the
Great Plains west of Mississippi River, arid in the great Basin
of southwest and
low winter temperatures in the Northwest. Americas natural
resources comprise
mainly of coal, copper, lead, petroleum and timber. The country
has an
environmental index of 63.5 (ranked 61st out of 163) (Yale &
Columbia 2010), a
drop from its initial 78.5 in 2006 (ranked 28th out of 133).
This is obviously a
significant decline. As at 2006, Americas greenhouse gas
(million tons CO2
equivalent) emissions were 7,017 while its greenhouse gas per
capita (tons CO2)
were 23.0 (unstat.un.org). America signed the Kyoto Protocol on
12th November,
1998, but is yet to ratify the Kyoto Protocol
(http://unfccc.int). The argument the
government gave was that accepting such mandatory emission
reductions would
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33
affect the economy of the country. This was under the
administration of President
George Bush.
There was an early public awareness of the problems associated
with
environmental degradation from pollution in the America and the
government
went ahead to create specific environmental responsibilities for
companies
generating such pollutions. But there have been significant
challenges due to its
size and varying institutional arrangements among the 50 states
when it comes
to achieving the same environmental regulations across the
country.
United States focuses on incorporating environmental
sustainability in its
economic policies but its greatest hurdle is achieving this
across national level
due to political conflicts. Its weakness is in some of the
implementation of its
strategies as there are no established timelines and no domestic
policy
framework. The Environmental Protection Agency (EPA) is the
independent
federal agency established to coordinate programs aimed at
reducing pollution
and protecting the environment.
In America, sustainable development is directed more as
political and
economic action rather than involving the interplay between the
three dimensions
of the environment, the economy and society. There is more
concern for political
and economic benefits than achieving sustainable development
from the three
target dimensions and in this process the society is bound to
suffer on the long
run. According to the Kyoto Protocol, USA is expected to reduce
emissions by
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34
7% but United States has refused to ratify the Kyoto Protocol
even though it is
currently the greatest emitter of carbon dioxide in the world.
Instead of handling
the reduction of gas emission as a national problem, the US
government
proposed plan for incentives for US businesses to voluntarily
reduce their
greenhouse gas emissions 4.5% by 2010 but critics had argued
that the plan
would only result in an increase in US greenhouse gas emissions
over the 1990
levels.
Still, urban, industrial and agricultural activities continue to
exert pressure
on the environment. Some areas of the population are still
exposed to
unsatisfactory quality of the environment; the decline in the
area of wetlands has
not yet stopped and the number of threatened and endangered
species is still
growing. A change to more environmentally and economically
cost-effective and
integrative sectoral policies will be essential to moderate the
increase in
environmental expenditure (OECD, 2007). Otherwise, this may have
a long term
economic implication in resolving the negative impact on the
society.
Environmental Management
Strengthening the implementation of environmental policies
The compliance of environmental policies has improved greatly
and the
enforcement is strong since the formation of EPA on December 2,
1970. There is
enough public participation with good access to environmental
information and
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35
the environmental program has profited from environmental
science and
research.
But environmental policies are still at crossroads in the United
States, not
because there is less or more environmental concern than ten
years ago, but
because new and alternative approaches to policy development
and
implementation appear desirable. There was a considerable
decline in its
Environmental Performance Index from 78.5 in 2006 to 63.5 in
2010 which
requires more strategies and efforts to improve. This decline is
due to lower
ecosystem vitality scores and high emissions of greenhouse
gases.
America should streamline the environmental regulatory system
and
promote a performance-based approach towards its environmental
policies while
maintaining health and environmental standards. Also, the
country should
examine pricing policies or tariff structures for key natural
resources such as
water, grazing land and fossil-fuel energy to ensure that they
take environmental
considerations into full account. These tariff structures and
pricing policies should
be reviewed upwards to strengthen the application of polluters
pay principle.
Water
According to OECD (2007), the 1972 Clean Water Act in America
has
been used very effectively in reducing point discharges. A
comprehensive range
of nationwide programmes by all federal water agencies support
and bring
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36
consistency to state and local activities which has made access
to safe and clean
drinking water very successful in America.
Despite the progress in improving water quality, about 40% of
assessed
rivers, 45% of assessed lakes and 33% of assessed estuaries are
not supporting
their assigned uses and the strategy to make all waters fishable
and swimmable
is yet to be met. There are still concerns on pollution of
waters from agricultural
activities and overflows from sewages. The availability of water
is still a constraint
in some regions like Georgia and Nevada due to drought.
Air
United States has made some considerable progress in
reducing
emissions over the years. According to OECD (2006), lead
emissions have
dropped by 88% since 1984, SO2 decreased by 18% between 1980 and
1993,
VOC emissions also decreased while NOX emissions have
stabilized. The
country has adopted national ambient quality standards under the
Clean Air Act
and has implemented regulatory measures on stationary and mobile
sources that
have proved effective. The regional (multistate) NOX trading and
the Acid Rain
Programs SO2 allowance trading system are some examples of
initiatives being
done in United States on practical implementation of emission
trading which may
prove helpful for other countries to emulate.
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37
Even though United States has developed some strategic
initiatives
towards the reduction of gas emission, it is still the highest
emitter of greenhouse
gas for CO2, SO2, and NOX, and is still one of the most
energy-intensive
economies. As at 2006, the energy consumption (1000tons oil
equivalent) in
United States was 1,994,876 which is very high when compared to
that of
Switzerland which was 19,785 (1000tons oil equivalent). The
energy per capita in
United States (kg oil equivalent) was 6,684(unstats.un.org) most
of which is
derived from fossil fuels. There are still problems with
ground-level ozone with
deposition of airborne pollution such as acid precipitation and
fine particulates,
and also, related health and welfare damage. Because of the
complexity of
federal-state-local government relationships, and of procedures
regulating
pollutant emissions, the process of implementing regulatory
policies has involved
high transaction costs to both regulatory agencies and regulated
industries
(OECD, 2007).
Nature, biodiversity and landscapes
The government and non-governmental organizations have
achieved
positive results in their efforts to conserve both natural
habitats and species.
United States manages a widespread system of national parks.
Some measures
have been adopted for threatened and endangered species, as well
as other
wildlife species. The farm policies initiated have slowed soil
erosion and habitat
loss caused by conversion to agricultural uses.
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38
Even with all these efforts, the pressure from economic
development is
still high on the natural environment. Habitats are still being
reduced or degraded
in many parts of the country and in coastal areas. There is no
reliable system of
providing information on many categories of protected areas,
particularly for
areas outside federal management (OECD, 2006).
Integration of environmental and economic decisions
United States should combine the interplay between environmental
and
economic issues during policy making processes. This is the only
way the
country can strive towards better sustainable development. The
country places
too much emphasis on the economic implications of environmental
policies
disregarding the long term effect on the society. The countrys
environmental
policies are mostly regarded separately from the other two
dimensions (economy
and society) instead of taking an integral view of the
three.
Even though the United States has achieved some considerable
success
in reducing the emissions of individual vehicles, the country is
yet to succeed in
controlling the growth of vehicle traffic. This is due to the
low cost of cars, low
fuel prices and thus poor patronage of public transportation.
The reduction of
pollution and traffic congestion can only be achieved if the
government pursues
long term environmental and transport strategies.
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39
China
China is picked for discussion from the developing parties
because China
is the second largest emitter of greenhouse gases outside
America. Even though
China is amongst the developing countries with no binding gas
emission
restrictions, it is important to assess what Chinas efforts are
towards sustainable
development with its high emission of greenhouse gases.
Brief Introduction
China is a country in East Asia. It is the worlds fourth-largest
country by
land size. It has a population of 1.3 billion, the largest in
the world (CIA, 2009).
The country officially became a UN member on 24th October, 1945
and is one of
the five permanent members of the UN Security Council. China has
remained
very active in UN activities.
Society
China is a communist country with 23 provinces, 5 autonomous
regions
and 4 municipalities. The system of government is composed of
the executive,
the legislative and the judicial. The countrys languages include
standard
Chinese or Mandarin, Yue (Cantonese), Wu, Minbei and Minnan
amongst other
minor languages. The countrys human development index is ranked
92nd out of
185 countries in 2009 (Human Development Report, 2009). The life
expectancy
at birth is 73years (CIA 2009).
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40
Economy
Chinas economy during the past 30 years has changed from a
centrally
planned system that was largely closed to international trade to
a more market-
oriented economy that has a rapidly growing private sector and
is a major player
in the global economy (CIA, 2009). The restructuring of the
economy and the
resulting efficiency gains have contributed to a significant
increase in Gross
Domestic Product since 1978. As at 2009, based on a purchasing
power parity
basis, China was rated the second-largest economy in the world
after the US,
although in per capita basis, China is still considered a
lower-middle income
country (CIA, 2009). The GDP is estimated at US$8.767 trillion
(purchasing
power parity), which is the 3rd largest in the world, with a
real growth rate of 8.4%
(2009 est.).The GDP per capita in 2009 was US$6,500 (CIA, 2009).
China has
several industries which include mining and ore processing,
textiles, electronics,
petroleum, automobiles, locomotives, aircrafts and
telecommunication
equipment. The industrial growth rate is 8.1% (2009 est.). The
labor force by
occupation were 39.5% agriculture, 27.2% industry, and services
33.2% (2006
est.) while unemployment rate was 4.3% in 2009 (CIA 2009).
Environment
China has a terrain that is mostly mountainous. It has high
plateaus,
deserts in west, plains, deltas, and hills in east. The climate
varies widely from
tropical in the south to subarctic in the north. Chinas natural
resources comprise
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41
mainly of coal, iron ore, petroleum, tin, natural gas, uranium
and hydropower
potential, which is the worlds largest. The country has an
environmental index of
49 (ranked 121st out of 163) (Yale & Columbia 2010) a drop
from its initial 56.2 in
2006 (ranked 94th out of 133). This is obviously a poor
performance. As at 2006,
Chinas greenhouse gas (million tons CO2 eq.) emissions were
6,103 while its
greenhouse gases per capita (tons CO2) were 5.0 (unstat.un.org).
China signed
the Kyoto Protocol on 29th May, 1998, ratified the Protocol on
30th August, 2002
and it came into force on 16th February, 2005.
(http://unfccc.int). Even though
China has ratified the Kyoto Protocol, it does not have a
binding reduction target.
The fast economic growth, urbanization and industrialization
have exerted
a lot of pressure on the environment with a resultant damage on
the ecosystem
and society. The Chinese government, in an effort to combat
this, is supporting
more balanced patterns of development, through concepts such as
harmonious
society and scientific development. They have campaigned for
strategies that
include planning for national economic and social development,
strengthening
environmental institutions, planning modern environmental
legislation, and
prioritizing environmental and natural resource management.
Despite all these efforts by the Chinese government, the rate of
air and
water pollution is still the worst in the world. There are still
problems with
biodiversity protection, waste management and desertification.
This is because
China has not been able to effectively integrate environmental
challenges with
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42
both economic and social decisions. China is still more
concerned about the
economic impact of some of these environmental policies rather
than fully
supporting them. The country has challenges with the
implementation of some of
its environmental policies as the governments financial support
towards the
environmental agency is still poor. The environmental agency
responsible for
environmental protection in China is the State Environmental
Protection Agency
(SEPA).
In China, sustainable development is still analyzed more from
the impact it
will have on the economy rather than on the three dimensions;
the environment,
the economy and the society. And if the economic benefit of an
environmental
policy is perceived to be low, such policy will be downplayed
without considering
the trade-offs. This is still the major challenge with a country
like China more
carried away with economic growth.
Environmental Management
Strengthening the implementation of environmental policies
According to OECD (2007), Chinas comprehensive and modern set
of
environmental laws, together with its successive Five-Year Plans
for National
Economic and Social Development (FYPs), and Five-Year
Environmental Plans
(FYEPs), provide a high-quality framework for pursuing
sustainable development
and environmental progress. China is working on the
implementation of some
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43
new policies which include decoupling pollutant emissions from
economic
growth, integrating environmental protection and economic
decision-making on
an equal footing and applying a mix of instruments to resolve
environmental
problems. It also supports and award schemes to encourage
implementation at
the local level with NGOs.
However, these efforts by China are still insignificant compared
to the rate
of environmental pressures due to fast economic growth. The
economic
incentives and societal benefits are still not strong enough to
encourage strict
environmental compliance. The performance objectives of local
leaders, the
pressures to raise revenues locally to finance un-funded
mandates, and the
limited accountability to local populations have generally meant
that economic
priorities have over-ridden environmental concerns (OECD,
2007).
Water
China has clear mechanisms and legal framework to set water
quality
objectives especially through its 2002 Water policy. It also
established economic
instruments for the usage of water at low rates. On flooding
concerns, China
invested heavily in infrastructures to protect against flood
damage and has
achieved some success in reducing flood risks in many areas.
Basic institutions
for river basin management are in place and the existing
physical planning laws
are strengthened to prevent further development on flood
plains.
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44
Despite all these strategies and efforts, the water pollution in
China is still
a major challenge. The agricultural, industrial and domestic
activities still result
into pollution as they are discharged into the rivers and lakes.
The aquatic
ecosystem is threatened; human health is also a major cause of
concern as the
use of untreated water in some rural areas results into
water-borne illnesses
such as diarrhea and typhoid. A lot of financial investment
needs to be made by
the Chinese government in order to tackle these challenges and
the enforcement
of very strict environmental policies that border on water and
rivers should be of
priority.
Air
China recently updated and tightened its legislative and
regulatory
framework on emissions of gases. It also introduced total
emission controls and
the designation of special control zones. The country recorded
some success in
diversifying energy sources and its dependence on coal was
reduced from 69%
to 30% during 1990-2004 (OECD, 2007). To improve the air quality
due to
transportation challenges, the country adopted fuel-efficiency
standards for light-
duty passenger vehicles in 2004, Euro standards for vehicle
emissions and bus
rapid transit systems. These efforts have contributed to some
improvements in
the surrounding air quality in China.
However, the quality of air in China is still one of the worst
in the world.
China is the second largest global emitter of greenhouse gases
by volume.
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45
Chinas car industry is the worlds third largest with many of its
cities paralyzed
by traffic and its inhabitants choking on the fumes of poor fuel
quality. The motor
vehicle accounts for more than 3% or 4% of Chinas greenhouse
gases, yet the
industry is still blossoming without stringent environmental
laws.
China promised a green Olympics as part of Beijings bid to host
the
2008 summer games. In order to achieve this, China provided 50
lithium-battery-
powered-buses and 1,150 low-floor buses that met the Euro-IV
emission
standards. The country made plans to close down backward iron
foundries with a
total production capacity of 100 million tons and backward steel
mills with a total
production capacity of 55 million tons between 2006 and 2010. It
also relocated
the Shougang steel industry from Beijing.
The output reduction and planned relocation of Shougang was seen
as a
departure from Chinas earlier policies on growth while ignoring
the
environmental consequences. This was to help Beijing's
government honor its
commitments to improve air quality in time for the Olympics. The
new plants
adopted new technologies to minimize emissions and waste
discharges.
From 1998 to 2007, Beijing spent $15.7 billion on environmental
initiatives.
According to the Chinese government, the city saw only 100 days
of good air
quality in 1998, while there were 241 such days in 2007. In
order to cut down on
air pollution, Beijing temporarily moved and shut down
factories. It took more
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than 1.5 million cars off the road and built new wastewater
treatment plants,
among many other things.
Even though China achieved most of its bid commitments, this
exercise
was not broadly applied to other cities and the momentum to
achieve a green
environment diminished after the hosting of the Olympics in
2008.
According to World Bank report (1992), epidemiological research
has
found consistent and coherent associations between air pollution
and various
health effects. These health issues in China include respiratory
symptoms,
chronic bronchitis, reduced lung function, cardiovascular and
cerebrovascular
diseases, hospitalization, outpatient visits, work and school
absenteeism and
premature death. And in trying to resolve these health
disasters, China is bound
to lose economically on the long run.
Nature, biodiversity and landscapes
China has received international recognition for its wetlands,
biosphere
reserves, natural and cultural heritage preservation programmes.
There have
been significant increases in protected areas at the national,
provincial, and
county levels. New forestry initiatives have been taken to
further develop shelter
forests in arid and coastal areas while the country is beginning
to recognize the
value of environmental outreach (OECD, 2007).
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47
Despite these successes, China still needs to integrate
nature
development protection concerns into development plans and
coordinate efforts
to protect nature and biodiversity inside and outside protected
areas.
Integration of environmental and economic decisions
China is making efforts to place environmental protection in a
more
strategic position. Different strategies are being employed to
integrate
environmental and economic decision-making. Some energy prices
like the price
of coal have been deregulated and the use of environment-related
taxes has
equally expanded.
However, doubling the GDP would involve strengthening of the
environmental management and finance, so that economic growth
is
environmentally sustainable. According to OECD (2007), even
though China may
be heading in the right direction, its present policies may not
be enough to meet
the strategic environmental objectives of the government.
Integration of environmental and social decisions
China has achieved significant success in moving a large number
of its
populace above the poverty line over the past 30 years. The
government has
channelled its focus towards emphasizing economic growth with
more attention
to social and environmental concerns. More access to
environmental information
and seminars is supported by the government. This is because the
government
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48
is interested in educating its citizens on the implications of
environmental
degradation in the society.
While some aspects of the urban environment in Chinas mega and
large
cities have improved, there is still the growing demand for
environmental services
such as water supply leading to large industrial migration from
western and
central China to Coastal China creating more environmental
pressure on coastal
China. However, China needs to reduce industry relocation and
environment-
related distortions to competitiveness and trade within China
through putting in
place effective and efficient national environment standard in
all the provinces.
Also, the country has to guard against abuse of the environment
by foreign
investors and encourage investments through the use of economic
incentives
that are attractive.
Revealing Questions
All these efforts made by Switzerland, America and China are
encouraging towards achieving the global target set by UNFCC but
the issue is;
are the countries doing enough? Should the countries reassess
their approaches
towards policies made to achieve sustainable development?
It is obvious from Switzerlands EPI of 89.1(Yale & Columbia,
2010) that the
country is heading in the right direction towards achieving its
sustainable
development objectives. What is Switzerland doing differently
from America and
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China? It is simply its approach of adopting policies from an
integrative view of
the environment, society and economy.
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CHAPTER 4
INTEGRATION OF ENVIRONMENTAL AND ECONOMIC POLICIES
TOWARDS A BALANCED SOCIETY
In order to achieve sustainable development in the society, it
is important
to recognize that policies based solely on the environment
without considering
the other dimensions such as the economic and social impact will
not meet any
nations long term objectives. Environmental objectives cannot be
achieved for
long in the presence of an unhealthy economy, nor is it likely
that economic
activity that is built on a degrading environment is likely to
be sustainable.
Although, finding the right balance may be difficult, but the
right approach to
sustainable development is through the integration of
environmental, economic
and social policies.
According to Underdal (1980), for a policy to be considered
integrated,
comprehensiveness, aggregation and consistent criteria must be
met.
Comprehensiveness refers to issues, actors and space;
aggregation refers to the
evaluation of policy from an overall perspective (i.e.
environment, economy and
society) while consistency refers to the fact that the different
components of an
integrated policy are in accord with each other.
A lot of progress has been made in recent years towards better
integration
of economic and environmental objectives leading to
environmental policies that
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are more efficient. Some examples include the use of
economic-based
approaches to environmental policies and the application of
environmental
assessment procedures.
As both costs and benefits of environmental protection expand,
the need
for stronger integration of environmental and economic policies
will evolve, as will
the stakes for individual consumers and producers in the society
- all of whose
incomes and other framework conditions will increasingly be
affected by policies
aimed at protecting environmental quality (OECD, 2008)
Switzerland as previously discussed in the last chapter, may not
have
achieved the perfect balance for their society but the country
has aligned itself
towards the integration of environmental, economic and social
policy-decisions
which is the right step towards sustainable development.
Switzerland is also
making efforts beyond its borders through its international
cooperation for
sustainable development by ratifying the Kyoto protocol and by
actively
promoting environmental protection in the international flora.
America and China
exhibit the zeal to strive in the same direction as Switzerland,
but because a lot
of their policies are not properly integrated, they continue to
face stronger
environmental degradation compared to Switzerland.
More so, America and China are still concerned about
undertaking
international binding environmental policies because of the fear
of negative
impact on the countrys economy and its political implications.
These countries
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should actually focus on the long range impact on all the three
dimensions
(environment, economy and society) in order to attain their
desired goals;
otherwise, short term decisions may turn out to be a costly
decision on the long
run both economically and politically.
In Switzerland, all levels of government, private businesses and
non-
governmental organizations (NGOs) are fully interested and
involved in the drive
towards sustainable development at the environmental, economical
and societal
levels because they all understand the impact of the negative
consequences on
the society. There exist joint efforts and proper communication
process when
policies are made in Switzerland. In this way, people contribute
to the final
policies and therefore strive to comply.
However, in America, most of the environmental policies are not
uniform
around the states making it difficult to achieve a national
target. Due to pressing
short term economic benefits, some states give in to some policy
allowances
creating inconsistency in compliance. Also, in China, the agency
in charge of
environmental protection is not given the full financial and
political support
required to carry out their responsibilities effectively thereby
resulting in poor
compliance levels.
America and China, as the two largest emitters of greenhouse
gases,
need to step up and tackle the environmental challenges the
world is facing and
not be limited to the confines of their borders. Some of these
gases or pollutions
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are not regional but transcend beyond their borders resulting in
global calamity.
Consideration has to be given to the world at large due to the
implication of one-
sided policy-decision making.
A number of countries around the world are already
implementing
strategies that are integrated and have achieved significant
successes in the
benefits the society is deriving. Some of these strategies are
outlined below
Imposing Environmental Taxes
This strategy involves meeting the set environmental objectives
through
the use of market-based instruments such as environmental taxes.
As these
taxes are levied on the polluters and users of the products, it
gets to a point
where the product becomes too costly to produce or purchase
leading to a
change in their behavior towards the environment. There are also
incentives for
the environmentally friendly innovations on the long run through
this process. For
instance, in Portugal, Netherlands and Finland, several
differentiations in their
car registration taxes were introduced to encourage car buyers
to opt for the
cleanest car models. This has challenged automakers to develop
technology that
encourage fewer emissions in cars. In Turkey, increase in tax
rates on petrol and
diesel has led to a significant reduction in the usage of fuel
and emission of
gases.
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Tradable Permits
This system also provides some form of flexibility as
environmental taxes
do for polluters in order to achieve the set environmental
goals. Trade permits
are a means of establishing caps or promoting direct investment
in
environmentally beneficial outcomes towards achieving
environmental goals.
Some countries apply the cap-and trade system while others use
the baseline-
and credit system. In the cap-and trade choice, the central
authority sets a limit
on the amount of gases that can be emitted over a certain
period. Companies are
then issued emission permits in form of credits which represents
the right to emit
a specific amount. The total amount of credit cannot exceed the
cap. The
companies that require more emission would buy credits from
those who emit
less. This process is referred to as trade. In this regard,
those who can reduce
emissions most cheaply will do so, achieving the pollution
reduction at the lowest
cost to the society.
However, in the baseline-and credit approach, there is no
precise cap on
aggregate emissions. Rather, each firm has the right to emit a
certain baseline
level of emissions. The baseline is determined by the central
authority based on
historical emissions or from a performance standard that
specifies the permitted
ratio of emissions to output. Those polluters that are not under
an aggregate cap
can create credits by reducing their emissions below the
baseline level of
emissions. These credits can be sold to polluters that exceed
their baselines.
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old waste.
Presently, both cap-and-trade and baseline-and-credit systems
are being
implemented at similar rates at the international level
(Hasselknippe 2003). The
emission trading systems reduce abatement costs and make
inventors focus
more on environmental effectiveness. Examples include the
tradable SO2
permits in the US and the UK trading systems for CO2 emissions
and for
landfilling of biodegradable househ
Encouraging Technological Development
It is not enough to roll out environmental policies without the
available
technology to implement it effectively; otherwise lots of
industries will close down
or relocate which will lead to high rate of unemployment in the
society.
Technological development should be well promoted in line with
environmental
policies. Low-emission technologies offer considerable promise
for aiding the
decoupling of economic growth from long-term environmental
degradation.
Technological development can be promoted through policies
directly - through
financial support like grant or preferential tax treatment; or
indirectly - through
various constraints placed on environmentally harmful products
or through
economic incentives provided by taxes.
Direct Environmental Regulation
Direct regulatory instruments, such as laws on environmental
standards or
limits on greenhouse gases, represent a major proportion of
frameworks
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currently being used by most countries. According to OECD
(2008), while the
environmental effectiveness of direct regulatory approach is
often good, the
major hurdle is to avoid undue inflexibilities in these
regulations that might limit
their environmental effectiveness and economic efficiency.
Environmental Policies and Cushioning the Effects on the
Society
The long term effects of environmental policies on the society
are usually
fully considered by a number of countries before embarking on
the
implementation. In this way, the cost to the society is factored
in and sometimes
when the burden is heavier on the low-income earners, some
relief measures are
taken to reduce the impact.
For instance in 2008, Australian lower-income households were
given
huge compensations to cushion the higher energy and fuel costs
under the
emission trading scheme proposed by the government. The scheme
involves
placing a cap on carbon emission in Australia by